Boeing chairman says CEO won't get bonus until Max flies

CEO Dennis Muilenburg on Saturday offered to give up significant compensation for 2019. Sarah Silbiger  Reuters

CEO Dennis Muilenburg on Saturday offered to give up significant compensation for 2019. Sarah Silbiger Reuters

Calhoun claimed Muilenburg had questioned not to obtain a bonus for 2019 following lawmakers lambasted the CEO about his pay at the hearing final week.

Representatives Peter DeFazio and Rick Larsen said in a joint letter to fellow lawmakers that Boeing Co Chief Executive Dennis Muilenburg's answers at Wednesday's hearing "were consistent with a culture of concealment and opaqueness and reflected the huge pressure exerted on Boeing employees during the development and production of the 737 MAX". "It was a set of engineering decisions that ended up being wrong", he said.

"Remember, Dennis didn't create this problem", Calhoun said Tuesday.

Muilenburg reportedly called Calhoun on Saturday to concede his claim to bonuses and stock grants through the rest of the year.

Muilenburg is now under investigation by the Justice Department and Congress. He said that process, which includes deliveries of about 400 planes that Boeing has built during the grounding but not yet delivered, won't be completed until early 2021. He said that while the relationship between Boeing and the Federal Aviation Administration over certification has delivered strong results, that wasn't true for the Max.

Muilenburg admitted that fixing the MCAS is taking longer than expected.

The chairman of the U.S. House Transportation and Infrastructure Committee and the head of its aviation subcommittee said on Monday that it will continue its investigation into two fatal 737 MAX crashes after Boeing's testimony prompted new questions. In 2018, he received $20.4 million in stock and bonuses out of the $23.4 million total compensation he got for the year.

Muilenburg suggested scrapping his bonus on November 2, Calhoun said, days after an appearance in Congress in which angry lawmakers and the relatives of crash victims assailed the CEO's compensation. The jet remains under review by US and foreign regulators.

A production manager also raised safety concerns about speeding up the Max's assembly line. "From the vantage point of our board, Dennis has done everything right", though he also indicated that Muilenburg will be judged on successfully getting the Max back in service.

The former General Electric Co. vice-chairman, who has expertise in aerospace manufacturing and corporate turnarounds, was named chairman when Muilenburg was stripped of the role on october 11.

When discussing how to revitalize the brand, Calhoun said they would rely on their actions instead of words. McAllister joined Boeing in November 2016 when the Boeing 737 Max was well on its way to certification and after the flawed safety feature at issue in the crashes was already part of the jet's design.

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